Considered Washing Hands About 12 Percent VAT, Golkar Legislators Ask PDIP Not To Forget History

Tax illustration (Pixbay)

JAKARTA - Chairman of Commission XI DPR RI Misbakhun highlighted the PDIP-P's attitude which seemed to reject the 12 percent increase in VAT. The Golkar legislator asked PDIP not to forget history, where the party bearing the bull symbol was the initiator for the 12 percent increase in VAT.

"It is not appropriate for the PDI-P to make political steps to wash their hands as if they were not involved in the political process when discussing the Law on Harmonization of Tax Regulations (HPP). Where the determination of the increase in VAT rates from 10 percent gradually rose to 11 percent on April 1, 2022 and rose again to 12 percent on January 1, 2025. Everything is contained in the HPP Law No. 7 of 2021 on October 7, 2021," Misbakhun told reporters, Monday, December 23.

The Golkar politician then defended President Prabowo Subianto who is now considered the mastermind behind the increase in VAT. According to Misbakhun, as the president elected by the people for the 2024-2029 period, President Prabowo vowed to carry out the state constitution and carry out the law as straight as possible.

"For this reason, carrying out the mandate of the HPP Law where there is an increase in VAT of 12 percent is a consequence that must be carried out by the government of Mr. President Prabowo," said Misbakhun.

Therefore, continued Misbakhun, if at this time there is a political effort to return the direction of the PDI-P by making efforts to reject it, it means that the party chaired by Megawati Soekarnoputri wants to 'stay short of playing', aka run away from obligations.

"They are involved in the political process of making the law as chairman of the Panja for the General Provisions and Tax Procedures Bill (KUP) is the Dolfie OFP as Chair of the Panja when the bill was first given a name, then changed to become the Law on Harmonization of Tax Regulations (HPP)," said Misbakhun.

"Political attitudes to declare the PDI-P like this must be known by many Indonesian people, when in power what to say. When they are not part of power as if they are at the forefront of voicing the interests of the people. Be political elegantly," he added.

As a member of the Working Committee for the HPP Bill and historical and living witnesses, Misbakhun admitted that he was very aware of the dynamics of the discussion of the bill. In fact, he said, the Golkar Party faction was not involved in several lobby meetings in the discussion of the bill because it was considered too much discussion and arguments were critical of several important issues in the Problem Inventory List (DIM).

"When the bill was discussed, the Golkar Party faction for the MSME tax rate actually asked for the tariff to be lowered from 1 percent to 0.5 percent. The decline of 0.5 percent is equivalent to a 50 percent decrease. This is the real side of the Golkar Party for the community micro, small and medium enterprises," explained Misbakhun.

Misbakhun emphasized that the political stance of the Golkar Party is very clear. After the HPP Law is approved, every law must be implemented in the context of orderly state and constitution.

"Mr. Prabowo's steps regarding the increase in VAT of 12 percent are clearly directed. According to the order of the HPP Law, it is up 12 percent for selected items only on components of goods that have been affected by the sale of luxury goods. This is a wise political moderation from Mr. President Prabowo, that the mandate of the law is still carried out by taking into account all the aspirations of the community and the business world regarding the current economic situation that requires a lot of incentives from the state," he said.

"For this reason, the Golkar Party always provides support to every directive and political step taken by President Prabowo to be followed and carried out as well as possible," concluded the member of the East Java electoral district DPR.

It is known that the HPP Law, which became the basis for the 12 percent increase in VAT, during the discussion of the draft law, was processed in the Panja Bill chaired by the Deputy Chairman of Commission XI of the DPR at the PDIP Faction at that time, Dolfie Onniel Fredric Palit.

In the first level discussion at Commission XI of the DPR with the government, as many as eight factions agreed that the bill was brought to a plenary session of the DPR to be ratified. The HPP Bill is expected to be an important component in tax reform, especially in the direction of a fair, healthy, effective, and accountable tax system.

However, recently the chairman of the Indonesian House of Representatives who is also PDIP elite Puan Maharani issued a statement in a manner of disapproval of the 12 percent increase in VAT. Puan said that she understands the urgency of increasing state revenue through this VAT rate. However, she does not want people to be victims of this policy.

"We must understand the condition of the people, do not let the increase in VAT even make the people's economy even more difficult," said Puan in a written statement some time ago.